CREDIT NO. 57 PAK
Project Agreement
(Pakistan Western Railway Project)
BETWEEN
PROVINCE OF WEST PAKISTAN
AND
INTERNATIONAL DEVELOPMENT ASSOCIATION
DATED JUNE 24, 1964


CREDIT NO. 57 PAK
Project Agreement
(Pakistan Western Railway Project)
BETWEEN
PROVINCE OF WEST PAKISTAN
AND
INTERNATIONAL DEVELOPMENT ASSOCIATION
DATED JUNE 24, 1964


AGREEMENT, dated June 24,1964, between the PROVINCE
OF WEST PAKISTAN, acting by its Governor (hereinafter
called the Province), and INTERNATIONAL DEVELOPMENT
ASSOCIATION (hereinafter called the Association).
WHEREAS by a development credit agreement of even
date herewith (hereinafter called the Development Credit
Agreement) between the ISLAMIC REPUBLIC OF PAKISTAN
(hereinafter called the Borrower) and the Association, the
Association has agreed to make available to the Borrower
a credit in various currencies equivalent to twenty-five
million dollars ($25,000,000), on the terms and conditions
set forth in the Development Credit Agreement, but only
on condition that the Province agree to undertake certain
obligations to the Association as hereinafter in this Project
Agreement set forth;
Now THEREFORE the parties hereto hereby agree as
follows:
ARTICLE I
Definitions
SECTION 1.01. Wherever used in this Project Agreement,
unless the context shall otherwise require, the several terms
defined in the Development Credit Agreement and in the
Development Credit Regulations (as so defined) shall have
the respective meanings therein set forth.
ARTICLE II
Particular Covenants of the Province
SECTION 2.01. (a) The Province shall carry out or cause
to be carried out the Project, and shall conduct or cause


4
the operations of its Railway to be conducted, with due
diligence and efficiency and in conformity with sound
railway, engineering and financial practices.
(b) The Province shall make available the proceeds of
the Credit or the equivalent thereof to the Railway on terms
and conditions to be determined by agreement between the
Province and the Association.
(c) The Province shall make available to the Railway
promptly as needed all sums and other resources which
shall be required for the carrying out and operation of
the Project.
SECTION 2.02. (a) Upon request from time to time by the
Association, the Province shall cause to be furnished
promptly to the Association the plans, specifications and
work schedules for the Project and any material modifi-
cations subsequently made therein, in such detail as the
Association shall request.
(b) The Province shall maintain or cause to be main-
tained records adequate to identify the goods financed out
of the proceeds of the Credit, to disclose the use thereof
in the Project, to record the progress of the Project
(including the cost thereof) and to reflect in accordance
with consistently maintained sound accounting practices the
operations and financial condition of the Railway; shall
enable the Association's representatives to inspect the
Project, the goods, the railway property and equipment and
any relevant records and documents; and shall furnish or
shall cause to be furnished to the Association all such
information as it shall reasonably request concerning the
expenditure of the proceeds of the Credit, the Project, the
goods, and the administration, operations and financial
condition of the Railway.
SECTION 2.03. (a) The Province and the Association
shall cooperate fully to ensure that the purposes of the
Credit will be accomplished. To that end, each of them


5
shall furnish to the other all such information as it shall
reasonably request.
(b) The Province and the Association shall from time
to time exchange views through their representatives with
regard to the performance by the Province of its obligations
hereunder, and the administration, operations and financial
condition of the Railway. The Province shall promptly
inform the Association of any condition which interferes
with, or threatens to interfere with, the accomplishment
of the purposes of the Credit, or the maintenance of the
service thereof, or the performance by the Province of
its obligations under this Project Agreement or which
shall increase or threaten to increase materially the esti-
mated cost of the Project.
SECTION 2.04. Except in the normal course of business,
goods purchased or paid for out of the proceeds of the
Credit shall not be sold or otherwise disposed of without
the prior consent of the Association.
SECTION 2.05. Except as shall be otherwise agreed
between the Province and the Association, the Province
shall insure or cause to be insured with responsible insurers
all goods financed out of the proceeds of the Credit which
are to be imported into its territory. Such insurance shall
cover such marine, transit and other hazards incident to
purchase and importation of the goods to the site of the
Project and shall be for such amounts as are consistent
with sound commercial practices. Such insurance shall be
payable in the currency in which the cost of the goods
insured thereunder shall be payable or in dollars.
SECTION 2.06. Except as shall be otherwise agreed by
the Province and the Association, the Province shall cause
all goods purchased in whole or in part with the proceeds
of the Credit to be used in the territories of the Borrower


6
exclusively in the carrying out of the Project; and shall
cause title to all such goods to be obtained free and clear
of all encumbrances.
SECTION 2.07. The Province shall pay or cause to be
paid all taxes, if any, imposed under the laws of the
Borrower or laws in effect in the territories of the Borrower
on or in connection with the execution, issue, delivery or
registration of this Agreement or the Development Credit
Agreement or the payment of principal and service charges
thereunder.
ARTICLE III
Effective Date; Termination
SECTION 3.01. This Project Agreement shall come into
force and effect on the Effective Date. If, pursuant to
Section 8.04 of the Regulations, the Association shall termi-
nate the Development Credit Agreement, the Association
shall promptly notify the Province thereof, and upon the
giving of such notice, this Project Agreement and all
obligations of the parties hereunder shall forthwith
terminate.
ARTICLE IV
Miscellaneous Provisions
SECTION 4.01. Any notice, demand or request required or
permitted to be given or made under this Project Agree-
ment, and any agreement between the parties contemplated
by this Project Agreement, shall be in writing. Such notice
or request shall be deemed to have been duly given or made
when it shall be delivered by hand or by mail, telegram,
cable or radiogram to the party to which it is required or
permitted to be given or made at its address hereinafter
specified, or at such other address as such party shall have
designated by notice to the party giving such notice or


7
making such demand or request. The addresses so specified
are:
For the Province:
Chief Secretary
Government of West Pakistan
Lahore
Alternative address for cablegrams and radiograms:
West Pakistan
Lahore
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D. C. 20433
United States of America
Alternative address for cablegrams and radiograms:
Indevas
Washington, D. C.
SECTION 4.02. Any action required or permitted to be
taken, and any documents required or permitted to be
executed, under this Project Agreement on behalf of the
Province shall be taken or executed by the Chief Secretary
to the Government of West Pakistan or such other person
or persons as the Province shall designate in writing.
SECTION 4,03. The Province shall furnish to the Associ-
ation sufficient evidence of the authority of the person or
persons who will, on behalf of the Province, take any
action or execute any documents required or permitted to
be taken or executed by the Province pursuant to any of
the provisions of this Project Agreement and the authenti-
cated specimen signature of each such person.


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IN WITNESS WHEREOF, the parties hereto have caused this
Project Agreement to be signed and delivered in their
respective names by their representatives thereunto duly
authorized, in the District of Columbia, United States of
America, as of the day and year first above written.
PROVINCE OF WEST PAKISTAN
By /s/ A. G. N. KAzi
Authorized Representative
INTERNATIONAL DEVELOPMENT AssoCIATION
By /s/ J. BURKE KNAPP
Vice President